AMZ123 learned that, according to foreign media reports, a few days ago, the European logistics giant DPD (Dynamic Parcel Distribution) announced that it would lay off 1,400 people, equivalent to one-seventh of its total number of employees.
DPD said the decision comes at a time when the logistics industry is facing a series of challenges, including a sharp drop in demand for parcels after the pandemic has ended, as well as rising operating costs.
During the pandemic, the logistics industry experienced unprecedented growth, with the number of parcels shipped by DPD increasing by 7% in 2021. But with the end of the pandemic and the decline in demand for online shopping, the number of packages shipped by DPD dropped by a significant 8 in 20228%, up to 41.2 billion pieces.
AMZ123 understands that DPD is part of the GeoPost group and a subsidiary of La Poste, which competes directly with other large parcel service providers such as DHL, Hermes, GLS and UPS.
It is worth mentioning that, like DPD, DHL experienced a similar decline in parcel volume in 2022, however, in the third quarter of 2023, DHL's parcel volume picked up again, increasing by 51%。
In the face of intensified market competition, DPD needs to adopt strategies such as layoffs and business adjustments to maintain its competitiveness and business flexibility.
DPD's chief executive officer, BJ RN SCHEEL, said the layoffs had been carefully evaluated and that the company would compensate those who were laid off as much as possible. He also stressed that this restructuring is necessary for the company to meet the challenges of the coming years.
It is worth mentioning that in addition to the decline in parcel volumes, DPD is currently facing the threat of a workers' strike. Due to the rising cost of living and the burden of work, DPD workers have recently launched a mass strike**.
According to the report, the German trade union verDI is in talks with the DPD to secure better working conditions for workers. ver.The DI is asking the DPD to provide more days of leave, a 14th-month salary and a higher allowance for night and holiday work.
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